Traders sued online broker Robinhood for failures on the trading platform

27-10-2021

A group of traders sued the broker Robinhood in the U.S. court. Users of the platform accused the company of repeated technical failures.

The main subject of traders’ indignation are failures that occurred in the spring of 2020, a period when the stock market was particularly volatile. News portal Law360 reports that about 7 million investors could join the motion. If the court takes up the case, every Robinhood customer who had at least one securities or options trade open on May 2 will be able to participate in the suit. 

“Plaintiffs submit a damages analysis showing losses in the tens of millions, excluding punitive damages and interest,” the motion states. 

The traders are unhappy with the lengthy period during which the broker failed to correct the failures. Investors plan to demand through the court that Robinhood change its organizational and operational structure. This will allow the company’s clients to minimize risks and delays in the trading process. 

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